Novatek to pledge Arctic LNG-2 stake in search for financing
Russia's Novatek has put up its 60% interest in the Arctic LNG-2 project as collateral as it seeks external long-term financing for the development, the company reported in a document published on April 5.
Novatek is due to hold its annual general meeting of shareholders on April 23, and its board has asked its investors to consent to the financing transaction.
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"As part of the implementation of the approved agreements, Novatek will pledge its share in the authorised capital of Arctic LNG-2 LLC in the amount of 60% of the authorised capital," the company said.
Novatek has said it wants to raise $11bn in external financing for Arctic LNG-2, and aims to secure the funds by mid-year. Russian state financier Sberbank said in January it had agreed to provide €3bn ($3.6bn) to the project.
The $21bn Arctic LNG-2 project is due to start up in 2023 and produce 19.8mn mt/year of LNG at full capacity. Novatek's partners in the venture are France's Total, Chinese companies CNPC and CNOOC, and Japan's Mitsui and Jogmec.